IVA Reimbursement Plan

IVA is a value-added tax that is placed on certain goods and services in Mexico (not unlike the VAT tax in Europe).    Just as foreign visitors can request a reimbursement of these taxes prior to leaving the EU countries, beginning in June the first phase of the IVA reimbursement plan will go into effect in certain airports in Mexico.  Mexico City, Cancun, Guadalajara, Los Cabos and Puerto Vallarta, will be among the first.  There will be modules set up in the airports for the reimbursement program.  Tourists can request a reimbursement of IVA for purchases in excess of 1,200 pesos spent in one place and if they can show that the items purchased will be leaving the country.  The tax amounts to 15% of the purchased item(s).  There are other rules that apply so we will keep you updated on this story as it develops.